thecryptobasic.com
Cardano founder Charles Hoskinson recently gave a sarcastic response to the plans to redesign Ethereum staking structure by Vitalik Buterin.
As two protocols that offer similar value propositions, Charles Hoskinson’s latest reaction to Ethereum’s grand staking plans proves the Cardano founder still believes in the former’s design flaws.
Despite ranking below Ethereum in market capitalization, Cardano’s founder often touts the protocol’s liquid staking offering as the de facto standard for judging a decentralized system.
The Ethereum Staking Plans
Speaking at an event in Turkey, Vitalik Buterin admitted that the centralized nature of Ethereum is not ideal. Notably, he called out the multiple staking pools model and acknowledged Ethereum’s “solo staking being hard.” According to Vitalik Buterin, there is a need to tackle these challenges via the unspent transaction (UTxO) approach.
Staking in the crypto ecosystem is a volatile concept in relation to regulatory allowance. Earlier this year, Kraken paid $30 million to settle a legal case with the United States Securities and Exchange Commission (SEC) for offering staking as an unregistered investment contract.
Since then, Proof-of-Stake (PoS) blockchain protocols started exploring how to change the nature of their Staking features. The plan to redesign the Staking service came as soon as Ethereum transitioned from its Proof-of-Work (PoW) system to PoS.
Though the SEC has not flagged the protocol in this regard, Vitalik Buterin’s proposition to decentralize the offering could make it less susceptible to falling under the regulator’s radar.
Cardano Founder and Community’s Position
Designed as an Ethereum killer with a mission to help cut on cost and speed of transactions, Charles Hoskinson takes every opportunity to sing Cardano’s praises.
Notably, his simple response to Vitalik Buterin’s proposition reads: “No worries, Ethereum 3 will have it all sorted.”
Ethereum 1 is generally denoted as the PoW era and Ethereum 2.0 is the current stage with a PoS consensus mechanism. Neither Vitalik Buterin nor the Ethereum Foundation has hinted at any potential Ethereum 3 in the future.
The fight for dominance continues and though Cardano seems ahead in most of the innovations Ethereum plans to implement, as community members pointed out, the DeFi Total Value Locked (TVL) of both protocols shows Cardano has a long way to go before catching up with Ethereum.